Built-in benefits: why timber is becoming a strategic asset class

Timber is increasingly recognised as a material that supports climate goals and offers competitive advantages in real estate portfolios. Its ability to store carbon, reduce embodied emissions, and enable faster construction makes it a compelling choice for forward-thinking investors.

The BbN Insight Report highlights the evolving business case for timber construction, showing how regulation, carbon valuation, cost competitiveness, tenant demand, and wellbeing benefits are reshaping the market.

Key insights include:

• Low-carbon advantage: Stricter embodied carbon regulations are driving demand for timber.

• Carbon finance opportunities: New methodologies allow stored carbon in timber buildings to be valued financially.

• Cost competitiveness: Studies show timber can already achieve cost parity in certain markets.

• Tenant demand: Timber buildings attract premium rents, higher occupancy and net-zero-focused tenants.

• Wellbeing benefits: Natural materials improve indoor air quality, productivity and long-term asset value.

This evidence-backed resource is designed for investors, asset owners and developers, seeking to pressure-test assumptions, identify opportunities and build a compelling narrative around timber as a sustainable, profitable and scalable construction solution. Global demand for low-carbon construction is accelerating. Regulatory frameworks and investor priorities increasingly favour materials that reduce environmental impact. Timber aligns with these trends, offering a pathway to meet climate commitments while delivering financial returns.